Narberth leases on domestic properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Narberth will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain cases you may not be entitled. There are also strict timetables and formalities to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancing solicitors that we work with undertake Narberth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Trailing unsuccessful correspondence with the freeholder of her basement apartment in Narberth, Rosie started the lease extension process just as the lease was approaching the all-important eighty-year mark. The lease extension was finalised in July 2008. The freeholder’s charges were restricted to about 450 pounds.
In 2011 we were contacted by Dr Louise Clark who, having acquired a one bedroom apartment in Narberth in March 2000. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar homes in Narberth with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected per annum. The lease elapsed in 2095. Considering the 69 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
In 2009 we were e-mailed by Mr and Mrs. E Thompson who, having was assigned a lease of a first floor apartment in Narberth in September 2009. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable flats in Narberth with an extended lease were worth £285,000. The mid-range ground rent payable was £55 invoiced monthly. The lease end date was on 20 May 2106. Having 80 years left we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.